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Where Do Used Car Dealers Buy Cars

The prices for used cars usually don't dip into the Whopper levels unless they have been flame broiled at 450 degrees. But you would be surprised where car dealers usually get their inventory at prices that are substantially lower than retail.

where do used car dealers buy cars

This is where most cars that are traded-in, rented out, off-lease, repossessed or wrecked will go to be sold and bought. Over 97% of dealers go to these auctions according to the National Independent Auto Dealers Association and typically the discount over retail ranges between 5% to 50% depending on what you buy.

Other dealers. There are plenty of new car stores that will offer up their trade-ins to other dealerships before bringing them out to the wholesale auctions. Those older rides are usually a bit more rough. But every once in a while you can find a pearl amongst the swine (and old used car smells) that come with buying from other dealers.

When it comes to used cars, condition is everything. And generally, the best-condition used cars are found when you shop certified pre-owned (CPO) vehicles. Most automakers offer certified pre-owned cars, trucks, and SUVs on the very same dealer lots as their new cars, and their CPO programs offer a long list of advantages over buying a used car from an individual or an independent used car dealer.

There are some that sell vehicles from specific sources such as government auctions, which are where vehicles used by state and federal authorities and agencies are disposed of. However, not all of these more specialized auctions are open to everyone. Auctions on eBay Motors are somewhere car dealers can look for inventory, but you can beat them to it as anyone can buy from eBay.

Closed auctions are another type of auction dealers go to in order to obtain used vehicle inventory. Buyers have to register to be allowed to attend and bid at these auctions and to get registered buyers will have to present their trade credentials.

Small dealers can have deals with local companies to supply them with vehicles and also to buy them back as used vehicles when they want to change them. This type of arrangement can happen on a larger scale too, with bigger dealer groups and larger fleets.

Lots of dealers, dealer groups, and independent traders scour them too, looking for used vehicle inventory. They may identify themselves as dealers or traders when they find a suitable vehicle and enquire about it, but sometimes they might not.

Not all dealers will advertise pre-registered as pre-registered vehicles. A lot of the time they will advertise them as demonstrators. These are new cars that have been registered to the dealership, just like a demo, but they are not used by the dealership.

Unlike demos, these vehicles owe the dealership exactly thesame as a brand new example. There has been no de-fleet bonus from themanufacturer, so, as they cannot be sold as brand new, they have to be pricedmuch lower than a brand new model where the customer would be the first owner.

A vehicle with this label has been repaired or constructed with a glider kit, but not one manufactured in two or more stages. A glider kit includes all components of a vehicle except the power train. It is generally used to rebuild heavy trucks or tractors that have been extensively damaged. Passenger cars built from custom kits are not considered reconstructed vehicles.

New York State's new and used car lemon laws provide legal remedies for consumers who buy or lease cars. If a car does not live up to the written warranty and cannot be repaired - or if it has not been repaired correctly after a reasonable number of attempts - the consumer could receive a refund or replacement car.

If any of these describe you, consider visiting an independent used-car dealership, which abound in the U.S. The National Association of Independent Automobile Dealers has 20,000 member dealerships, from small family-owned stores to nationwide chain stores such as CarMax, which has more than 175 locations across the country.

CARMAX: This used-car superstore is not connected with an automotive brand. But it's certainly not a corner car lot. Each store has hundreds of cars in inventory and, unlike most dealerships, CarMax has a no-haggle pricing policy.

SPECIALTY USED-CAR LOTS: Some used-car dealers have a preference for a certain brand or type of car and the inventory reflects this. Sometimes the clientele dictates the choice of cars. Examples are used-car lots that sell German cars (Audi, BMW and Mercedes) or only luxury vehicles. Sometimes these lots will narrow the focus even further, selling classic cars of a certain vintage.

DO YOUR HOMEWORK: Because of the varying age and condition of cars, buying a car at an independent dealership requires more work than shopping for a new car or even a used car that's on a new-car dealer's lot.

Begin by getting a baseline for what a used car should cost. At Edmunds, you can see a specific used car's trade-in value, which approximates what the dealer paid for it, and what's called the dealer retail price, which is what the dealer hopes to get when selling the car. Your opening offer should fall within those two numbers. Keep in mind that the dealership has to recondition the car, so add about $500 to $1,000 to the trade-in value figure. Then factor in about $1,000 for dealer profit. Make your opening offer accordingly and work your way up as the salesperson counters.

INVESTIGATE THE CAR'S CONDITION: Remember that most independents offer older cars with higher mileage and often without warranties. The car's condition is key. Before you buy, obtain and study the car's vehicle history report and arrange to have an independent mechanic evaluate the car. A legitimate dealership should have no problem with this request.

That said, a used car from a dealership might come with its own expenses and inconveniences. While there are more guaranties with a reputable business, not every vehicle dealer is looking out for your best interest.

One of the main ways that used car dealers buy and sell their inventory is through auctions, which are held across the country and can yield the widest range of vehicles that are available to the general public.

Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or related transactions must complete a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or BusinessPDF. Form 8300 is a joint form issued by the IRS and the Financial Crimes Enforcement Network (FinCEN) and is used by the government to track individuals that evade taxes and those who profit from criminal activities. Although the cash reporting requirements apply to many types of businesses, auto dealerships frequently receive cash in excess of $10,000 and are required to comply with the filing requirements.

The Used Car Lemon law provides a legal remedy for consumers who are buyers or lessees of used cars that turn out to be lemons. The law requires dealers to give consumers a written warranty. Under this warranty, dealers must repair, free of charge, any defect in covered parts. If the dealer is unable to repair the car after a reasonable number of attempts, the consumer is entitled to a full refund.

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This information provides answers to some of the more frequently asked questions regarding the purchase of a used car. It specifically covers the purchase of used cars and light trucks from a licensed dealer.

I bought a used car from a dealer and now I've changed my mind. Can I return the car and get my money back? Under most circumstances you cannot return the car only because you have changed your mind. While products sold to you at home (door to door) may be returned within 3 days if you change your mind, Maine law does not allow a "cooling off" period for sales taking place outside of the home, such as used cars purchased from a dealer.

Is the dealer required to give a 30-day warranty on used cars? No. Maine law does not establish a set warranty coverage (other than state safety inspection warranty) or time period that a dealer must provide for a used car. Maine law also does not specify what items and terms a warranty will include. Many times a dealer will have standard written warranty coverage. Review any written warranty carefully to determine the length of the dealer's warranty and the items covered for your used car. These will be listed on the express warranty section of the Used Vehicle Buyer's Guide.

What is a 'warranty of inspectability'? Generally, all used cars sold by dealers must have an inspection sticker on the car that was issued within the past 60 days. This is called a 'warranty of inspectability'. This means that the vehicle has been inspected for the purposes of issuing an inspection sticker, and will pass inspection on the day that your buy it.

Does the Lemon Law apply to used cars? Generally no. Maine's Lemon Law applies only to new vehicles, OR IN VERY LIMITED CIRCUMSTANCES TO USED CARS. The problems would have to occur within three years of original delivery of the car or within the first 18 thousand miles, whichever comes first, for the car to qualify. You should contact the Attorney General's Lemon Law Arbitration Office and find out if you are eligible for a free Lemon Law Arbitration hearing. 041b061a72


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